ORD-23-82 INCREASING THE AMOUNT OF PURCHASES EXEMPTED FROM CERTAIN BIDDING PROCEDURES FROM $500 TO $1000ORDINANCE NO. 23-
82 AN ORDIN~JCE OF THE CITY COUNCIL OF
THE CITY OF ORANGE AMENDING SECTION 3.08.
070 AND 3.08.180 OF THE ORANGE MUNICIPAL
CODE INCREASING THE AMOUNT OF PURCHASES
EX-EMPTED FROM CERTAIN BIDDING
PROCEDURES FROM $500 TO $1,000 AND INCREASING
THE MI0UNT FOR OPEN MARKET PROCEDURES
FROM 5,000 TO $10,
000.WHEREAS, since 1967, the National average increase of
inflation has been computed at over 100 percent;
and WHEREAS, Section 3.08.180 of the Orange Municipal Code
was last amended in 1969;
and WHEREAS, rising inflation costs have caused an increase
in items and services that could formerly be purchased on the
open market to be purchased under the bidding procedures;
and WHEREAS, during the past six months there were 211
purchase orders falling in the informal bidding area with purchase
orders in the $500 to $1,000 category;
and WHEREAS, this is an average of 35 informal bids in this
category per month:
and WHEREAS, 6.5 manhours are required to process an
informal bid;
and WHEREAS, 6.5 manhours times 35 purchase orders per
month equals 227.5 manhours per month;
and WHEREAS, 227.5 manhours per month times $12.80 (the
approxi-mate cost per hour) equals $2,930.20 per month;
and WHEREAS, for 35 purchase orders, 7.35 rnanhours are
required and at $12.88 per hour, the cost would be $94.67 per monthi
and WHEREAS, the projected savings would be 220.15 manhours
per month or $2,835.53 per month or $34,026.38 per year if
the exemption from bid procedures was increased from $500 to $1,000;
and WHEREAS, there are an average of eight bids per year that
fall in the non-public works formal bid procedure with amounts
in the 5,000 to $10,000
category; and WHEREAS, the average cost to process such a bid is $701.
27; and WHEREAS, to process these bids by the informal
bid procedure would save 44.5 manhours per bid on an average of 356
hours per
year: and WHEREAS, the average cost of an informal bid is $83.
72, a savings of $617.57 per bid or $4,950.56 per
yeari and WHEREAS, the increase in the dollar base of the
formal and informal bid process will be cost effective through
manhours
saved:and WHEREAS, as costs rise more bids will fall into
the above
Section 3.08.180 of the Orange Municipal Code is hereby
amended to read as follows:
WHEREAS, more manpower would be needed to handle the increased
number of bid procedures in the event that the current categories
were not increased.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ORANGE DOES
ORDAIN AS FOLLOWS:
Section I:
Section 3.08.070 of the Orange Municipal Code is hereby
amended to read as follows:
3.08.070 Bids Required--Exception. Purchases of
supplies,services, equipment and the sale of personal property shall
be by bid procedures pursuant to Sections 3.08.100 and 3.08.
180.Bidding shall be dispensed with only when an emergency
requires that an order be placed with the nearest source of supply,
when the amount of the purchase involved is less than $1,000,
when the commodity can be obtained from only one vendor, or
when,pursuant to Section 3.08.210, the City Council has
determined that the best interests of the City would be served by
dispensing with the bid procedures required by Sections 3.08.010
through 3.08.
180.Section
II:3.08.180 Open Market Procedure. A. Purchases
of supplies, equipment, contractual services and sales of
personal property of an estimated value in the amount of ten
thousand dollars ($10,000) or less may be made by the Purchasing
Officer in the open market without observing the procedure prescribed
by Sections 3.08.100 through 3.08.
170.B. Minimum Number of Bids. Open market purchases
shall,wherever possible, be based on at least three bids, and shall
be awarded to the lowest responsible
bidder.C. Notice Inviting Bids. The Purchasing Officer
shall solicit bids by written requests to prospective vendors,
by telephone, and by public notice posted on a public
bulletin board in the civic
Center.D. written Bids. Sealed written bids shall be
submitted to the Purchasing Officer who shall keep a record of all
open market orders and bids for a period of one year after the
sub-mission of bids or the placing of orders. This record,
while so kept, shall be open to public inspection. (Ords. 62-
69 and 20-58:
Prior code
2380)Section III:A summary of this Ordinance shall be published
and a certified copy of the full text of this Ordinance shall be
posted in the Office of the City Clerk at least five (5) days prior
to the City Council meeting at which this Ordinance is to
be adopted. A summary of this Ordinance shall also be
published once within fifteen (15) days after this Ordinance's passage
in the Orange City News, a newspaper of general
circulation, published and circulated in the city of Orange. The Ci ty
Clerk shall post in the Office of the City Clerk a certified copy
of
ABSENT: COUNCILMEN: NONE
ABSTAINED: COUNCILMEN: SMITH
WITNESS my hand and seal this 11th day of AU9vst 1982.
text of such adopted Ordinance along with the names of those
city council members voting for and against the Ordinance in
accordance with Government Code Section 36933. This Ordinance
shall take effect thirty (30) days from and after the date of
its final passage.
ADOPTED this 10th day of
Attest:
l1~g~City erk th . of Orange
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF ORANGE )
I, MARILYN J. JENSEN, City Clerk of the City of Orange,
California, do hereby certify that the foregoing ordinance was
introduced at the regular meeting of the City Council held on
the 27th day of July , 1982, and thereafter at a
regular meeting of said City Council duly held on the 10th
day of Auqust , 1982, was duly passed and adopted by the
following vote, to wit:
AYES:COUNCILMEN: BARRERA, MAYOR BEAM, PEREZ, BEYER
NOES:COUNCILMEN: NONE
Ma~~~
City Clerk of the City of Orange
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